Glossary
I. Taxes: Part of the public sector inflows, typically public sector inflows
excluding net public asset income and transfer from the private sector to the
public sector.
1) labor income tax: tax on the labor income. Typical example is labor income
share of income tax.
2) capital income tax: tax on the capital income. Typical examples are taxes on
the interest and dividend, corporation tax, capital income share of income tax.
3) consumption tax: tax on the consumption. Examples are taxes on
consumption in general, such as VAT, and taxes on specific items, such as
taxes on petroleum products.
4) wealth-related taxes: taxes on the wealth holding, such as property taxes,
and taxes on wealth transactions, such as acquisition tax and registration taxes
in Korea
5) other taxes and non-tax receipts: The examples of other taxes include other
taxes which cannot be easily classified as labor income tax, capital income
tax, consumption tax or wealth-related taxes. Non-tax receipts are not
officially classified as taxes, but effectively function as taxes. For example,
Korean government imposes some user fee on the tap water consumption. It
is not classified as a tax, but, is effectively a tax.
II. Social Insurance contributions and benefits
6) public pension benefits: public pension outflow excluding net capital income
payment.
7) public pension contributions: public pension inflow excluding net capital
income payment from private sector and subsidy from the government
8) public medical insurance benefits: public health care outflow excluding net
capital income payment.
9) public medical insurance contributions: public health care inflow excluding
net capital income payment from private sector and subsidy from the
government
10) other social insurance benefits: outflows, of worker’s compensation,
unemployment insurance, and other social insurance, excluding net capital
income payment.
11) other social insurance contributions: outflows, of worker’s compensation,
unemployment insurance, and other social insurance, excluding net capital
income payment from private sector and subsidy from the government
III. Transfer payment
11) Social welfare benefits: cash or in-kind benefits, excluding social insurance
benefits
IV. Government consumption (this refers to general government’s outlays minus
sum of social insurance benefits and transfer payment. Therefore, this includes
government purchase on durable goods as well as nondurable goods)
12) total government consumption
13) government consumption by function by the definition of National
Accounts
V. Monetary base
14) Seigniorage:
The government collects equal to the real value of new money printed
In holding this money, households forgo the nominal rate of return available
on other assets.
Attribute the burden of the acquisition of money balances as a payment to
the government and the disposition of money balances as a transfer from the
government.
This has the effect of imputing a cost equal to the nominal interest rate on
the holding money balances and also attributes to all current and future
generations taken together a total fiscal burden equal to the PV of
government receipt from printing money.